In his recent remarks, President Donald Trump suggested that Apple CEO Tim Cook should reconsider plans for construction in India. Insiders claim that expanding production in India could offer substantial advantages for major tech companies like Apple, which is looking to boost local manufacturing in order to produce a significant portion of its iPhones domestically.
Sources indicate that India has developed a manufacturing environment tailored for global smartphone firms, and Apple recognizes the competitive benefits of producing locally. An insider mentioned, “India has become a key player in smartphone manufacturing. Companies will continue to pursue this path if they understand the value in Indian manufacturing.”
It appears that Apple is set to have a majority of its iPhones sold in the U.S. labeled as “made in India” from the upcoming June quarter, but they need to fully embrace the competitive landscape.
“Their investment choices depend on their own competitiveness…” noted a source.
However, Apple representatives assert that there will be no shift in investment plans in India based on Trump’s comments. An executive told PTI that there are no changes to the proposals for establishing large-scale manufacturing facilities in the country.
During a business forum in Qatar—part of Trump’s recent whirlwind tour of the Middle East—the U.S. President mentioned that he advised Cook against building in India, highlighting, “I don’t want you to build in India. You can’t build in India… India has some of the highest tariffs globally, which complicates sales there.”
Trump later implied that one of the world’s leading companies, Apple, might move its factories back to the U.S., although no official statements from the company support that claim.
Despite Apple’s commitment to invest $500 billion in U.S. manufacturing, the reality is that establishing a comparable supply chain to support the nearly 76 million iPhones expected to be sold in the U.S. next year will be a significant challenge, with costs potentially running into the millions.
After Cook’s comments indicating a bifurcated strategy in iPhone production—which represents about half of Apple’s revenue—it’s been reported that upcoming iPhones for U.S. sales will be made in India, while existing facilities in China will cater to global demands.
This division also serves as a tactic to mitigate hefty tariffs imposed on iPhones produced in China and imported into the U.S., as both nations navigate a tense trade war.
Recently, some relief has been observed, as a recent agreement between the two countries lowered U.S. import duties to 10% and Chinese duties to 30%, but this arrangement will last only for 90 days.
Previously, tariff rates were much higher, potentially impacting trade significantly.
Currently, about 15% of the worldwide output of iPhones originates from India, along with popular accessories like AirPods manufactured in the country.
In an effort to strengthen local production, Electronics and IT Minister Ashwini Vaishnaw highlighted that significant iPhone exports began in 2005 as part of the Indian government’s “Make in India” initiative, aiming to outpace China’s capabilities.
